SC dismisses PIL for scrapping HZL-Vedanta deal of 2002

In a petition filed by M L Sharma, it was alleged that the properties of the company were undervalued and sold to Vedanta group at a throwaway price

The Supreme Court today dismissed a petition challenging the then NDA government's decision in 2012 to sell its stake in Hindustan Zinc Ltd (HZL) to Vedanta Group and imposed a cost of Rs 25,000 on the petitioner for filing a "frivolous" plea.

A three-judge bench headed by Chief Justice R M Lodha refused to entertain the petition filed by advocate M L Sharma saying, "Why are you digging out something from the grave?"

Taking a stern view, initially the bench, also comprising justices M B Lokur and Kurian Joseph, imposed a cost of Rs 50,000 on Sharma but later reduced it to Rs 25,000 after he repeatedly requested for leniency.

In his petition, Sharma had alleged that the properties of the company were undervalued and sold to Vedanta group at a throwaway price.

"Issue writ of mandamus to declare/quash impugned undervalued sale transactions of equity shares of HZL dated April 2002 and August 2003 by the disinvestment ministry being illegal, fraudulent within criminal conspiracy," the petition had said.

Vedanta group company Sterlite Opportunities and Ventures (SOVL) holds around 64 per cent stake in HZL. SOVL had initially acquired 26 per cent stake in HZL in 2002.

Subsequently, it bought 20 per cent public holding in the company. In 2003, it acquired additional 18.92 per cent stake from the government exercising call option.